* FSF bought shares for around 60 million euros
* Says will not raise stake further
* To get board representation
* Says will support Nexan acquisition policy
* Nexans stock up 1.8 percent
(Adds CEO quotes, details, background)
By Astrid Wendlandt
PARIS, July 9 (Reuters) - France's Sovereign Fund has acquired 5 percent of world cable industry leader Nexans, addressing the company's search for a new long-term investor.
Nexans had said in recent months it was keen to further stabilise its shareholder base after opening up its capital to Chilean cable group Madeco, which took a 9 percent stake.
The French Sovereign Fund said on Thursday it had built up its position by acquiring shares in the market for about 60 million euros and did not intend to raise its holding further.
Nexans, which was keen to get a long-term partner owning between 10-15 percent of the company, said the fund would get board representation.
The fund said it would support Nexans's acquisition policy. Spun out of Alcatel in 2001, Nexans wants to reduce its exposure to economic cycles and focus on energy and infrastructure sectors.
"Our intention is to support, accompany the company in its strategic development, its targeted acquisitions," French Sovereign Fund Chief Executive Gilles Michel said in a conference call with jouranlists.
At 0713 GMT, Nexans stock was trading up 1.8 percent at 36.9 euros.
As it announced the deal, Nexans confirmed its financial targets and said it was not seeing any improvement in trading.
"Markets remain difficult," Nexans Chief Executive Frederic Vincent said in a conference call. "We do not see any operational improvement today."
Vincent said Nexans' net debt at the end of June stood at 300-400 million euros.
Nexans expects operating margin to reach between 4.5 percent and 5 percent at the end of June and like-for-like sales to have dropped 15 percent in the second quarter.
The French Sovereign Fund was created last autumn to protect strategic businesses, finance industrial restructuring and help small and medium sized companies.
It is 51 percent owed by the French state-sponsored investment fund CDC and 49 percent by the French state directly.
(Editing by Simon Jessop)